What are the 10 points of Washington Consensus?
10 Elements of Washington Consensus
- Fiscal Adjustment:
- Tax Reforms:
- Deregulation:
- Trade Liberalisation:
- Competitive Exchange Rate:
- Privatisation:
- Removal of Barriers to Foreign Investment:
- Financial Reforms:
What is the main point of the Washington Consensus?
Essentially, the Washington consensus advocates, free trade, floating exchange rates, free markets and macroeconomic stability. The ten principles originally stated by John Williamson in 1989, includes ten sets of relatively specific policy recommendations. Low government borrowing.
What is meant by the Washington Consensus?
The term Washington Consensus usually refers to the level of agreement between the International Monetary Fund (IMF), World Bank, and U.S. Department of the Treasury on those policy recommendations.
What are the elements of Washington Consensus?
3The term “Washington Consensus” comes from a simple set of ten recommendations identified by economist John Williamson in 1989: 1) fiscal discipline; 2) redirecting public expenditure; 3) tax reform; 4) financial liberalization; 5) adoption of a single, competitive exchange rate; 6) trade liberalization; 7) …
What does the Washington Consensus promote?
The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the “standard” reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monetary Fund (IMF), World Bank and United States Department of the Treasury.
What is the difference between the Washington Consensus and the Post Washington Consensus?
While the Washington consensus focused on the perfection of the market the post Washington consensus does the exact opposite, it points out market limitations and ways of correcting such limitations (Stiglitz 2001).
What is the result of the Washington Consensus?
The Washington Consensus has also resulted in structural reforms, with the goal of making developing countries more competitive. The three main thrusts of these reforms have been the deregulation of domestic markets, the privatization of public firms, and the liberalization of trade and financial flows.
What should the World Bank think about the Washington Consensus?
Say that we in the Bank believe it is appropriate to go beyond the Washington Consensus by emphasizing the importance of the institutional dimension as well as of the sort of policies embodied in the original version of the Washington Consensus, of policies that will promote an equitable distribution of income as well …
Is there still a Washington Consensus?
Following the strong intervention undertaken by governments in response to market failures, a number of journalists, politicians and senior officials from global institutions such as the World Bank began saying that the Washington Consensus was dead.
